Tognum Continues Strong Performance in Q2 2007

Preliminary TGM figures for Q2 and H1 ending June 30, 2007

Two engines for each of 180 high-speed vessels

• Adj. EBIT in Q2/07 EUR 106mn; +49% vs. Q2/06
• Revenues in Q2/07 EUR 669mn; +4% vs. Q2/06
• FY/07 adj. EBIT-growth expected to be at +21-25% vs. FY/06
• FY/07 revenues to grow more than 9% y-o-y vs. FY/06
• Total net financial debt post-IPO below one-time adj. EBITDA

Friedrichshafen/Germany – Tognum AG reports a continued high sales level and a strong margin increase in second quarter of financial year 2007 (Q2/07). Operating margins have been particularly high, having been influenced by an exceptional portion of After Sales business in Q2/07. Based on the available financial information, the company expects to reach its ambitious targets for revenues and earnings for the financial year 2007 (FY/07).

According to preliminary financial figures, revenues in Q2/07 amounted to Euro 669 million. This number includes Euro 28 million revenues of first-time consolidated Katolight Inc. that was acquired in April 2007.

Total Q2/07 revenues represent a 4 per cent increase over Q2/06 (Euro 645 million) and were on a similar level as in Q1/07 (Euro 667 million). This is very satisfactory given both the high sales level in Q1/07 and the high inventory build-up in the reporting quarter. The related orders predominantly Marine and Powergen will be invoiced in the second half of FY/07 (H2/07). Due to this temporary change in sales mix the After Sales contribution to total revenue increased overproportionally.

For Q2/07, adjusted EBIT (Earnings Before Interest and Tax) amounts to Euro 106 million. That represents a 49 per cent increase versus Q2/06 (Euro 71 million) and a 6 per cent increase versus Q1/07 (Euro 100 million). Adjusted EBIT-margins of both first and second quarters of the current financial year benefited mainly from the overproportional After Sales business which is not representative for the full FY/07. Furthermore, the margins improved partly based on excellent capacity utilization.

On June 30, 2007, order intake for FY/07 amounted to Euro 1.6 billion translating into a book-to-bill ratio of 1.2. With respect to the H2/07, Tognum expects to further enhance its sales growth especially by growing revenues in Marine, Powergen and Onsite En-ergy Systems. Therefore Tognum now expects an overall increase of FY/07 revenues by more than 9 per cent compared to FY/06 pro-forma results.

Based on a further positive market environment,
the EUR/USD exchange rate to stabilize at the current level, and
the company’s strong performance in the H1/07,
Tognum’s management expects for the FY/07 an improved growth of the adjusted EBIT in the range of plus 21-25 per cent in comparison to the 2006 pro-forma adjusted EBIT of Euro 309 million.

As a result the Euro 268 million IPO proceeds to the company in Q3/07, Tognum AG’s total net financial debt could be reduced post-IPO to below one-time adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation). In connection with a newly syndicated multi-currency credit facility the company now benefits from investment grade-like credit terms and has sufficient financial capacity for further investments.